Entries by Greg Dickson

Changes to Travel and Subsistence

The government will introduce legislation in the Finance Bill 2016 under S339A ITEPA 2003, to restrict tax relief for home to work travel and subsistence expenses for works engaged through an employment intermediary. This will mean the rules are the same as for employees.

The changes take effect from 6th April 2016 and restrict the claiming of taxable reliefs on benefits claimed through PAYE known as Salary Sacrifice arrangements, which is the way we claim your tax relief through the Hamilton Bradbury Umbrella.

Generally, employees cannot claim relief on their regular commute from home to work and back, the introduction of legislation is to ensure that only eligible workers can claim this relief.

The S339A legislation is also known as IR35 and has broad scope. As a worker who is an employee of an Umbrella Company you are not caught by IR35 because the employment is taxable under PAYE however, the new rules SDC have to be applied when expenses are claimed.

3 reasons interview go wrong

I’m gonna show you a simple and effective method to answering any interview question. This method will help you land the job of you want. Typically there are three main reasons why an interview doesn’t go well; the first is that you can articulate yourself and communicate exactly why the perfect fit for the job […]

Treasury stands up for the Umbrella

During Monday’s parliamentary questions there was a written question of Conservative MP to Aberconwy Guto Bebb  “what steps his Department is taking to stop agencies using umbrella companies to manage the payroll function of companies within the construction industry” The question fro Guto Bebb some after the Welsh Assembly stepped in and banned contractors working on […]

No Umbrellas for the Welsh Assembly

The recent action from media sources and unions about the practice of umbrella companies has lead to the Welsh assembly to stop contractors using Umbrellas on any of the public construction projects. Hamilton Bradbury is understands the decision of the Welsh assembly but is disappointed that the actions of a “few” has an effect on […]

What it takes to be a Contractor

For lots of people who have actually made the leap into contracting already the advantages of the contracting working style massively surpass the disadvantages and it can be hard to understand why everyone isn’t really doing the same thing. But for new contractors, or rather possible professionals, taking the final step far from their old work into the brave new world of contracting can typically be challenging. That’s due to the fact that they rightly do their research and see that there are a variety of disadvantages to the way of life which for some people it might not be the right move.

This post will discuss some of the main issue you may have.

Understanding Contractor Mortgages

Buying a house and taking out a mortgage represent the largest financial decision – and commitment – that you will ever make in your life. That’s why before you even start to think about getting a mortgage you need to understand how mortgages work and what kinds of mortgage might be right for you. What […]

Discounted Rate Contractor Mortgages

A discounted rate mortgage takes the standard variable rate and then sweetens the deal for the borrower with a fixed reduction. As an example, if the standard variable rate was 3% and you sign up to a mortgage with a discount of .5% then you would be paying an interest rate of 2.5% every month. […]

Cash-back Contractor Mortgages

Another variation on the standard variable rate mortgage is the cash back mortgage. Cash back mortgages work along the same principles as discount mortgages but instead of having a discounted period wherein you pay back less interest for a pre-agreed period, you will receive a pre-agreed amount of cash back or a lump sum. The […]

Variable Rate Contractor Mortgages

Variable rate mortgages are mortgages in which the interest rate that a borrower is given is fluid and will vary according to either the lender’s SVR (standard variable rate) or the Bank of England’s base rate. In other words, the term ‘variable’, as opposed to ‘fixed’ refers to the fact that the interest rate on […]

IT Contractors Salary Guide

Anyone thinking about working as an IT contractor will of course ask themselves certain questions before making the leap. Will it deliver all that on all the advantages that are frequently mentioned – more flexibility, more freedom, broader skills development and a chance to widen employment horizons? Ask most contractors and their answer will inevitably […]

Capped Rate Mortgages

Capped rate mortgages are often seen as offering the best of both worlds, sitting somewhere between standard variable rate mortgages and fixed rate mortgages. Capped rate mortgages will closely follow the standard rate just as variable rate mortgages do, but they come with the security of not going over a pre-agreed level of interest and […]

Understanding Contractor Mortgages

Buying a house and taking out a mortgage represent the largest financial decision – and commitment – that you will ever make in your life. That’s why before you even start to think about getting a mortgage you need to understand how mortgages work and what kinds of mortgage might be right for you. What […]

Guide to Choosing an Umbrella Company

Right now, you’ll discover Umbrella Business promoting as much as 85 % retention of your earnings. That sounds pretty good however not when you understand what’s really going on. The method they do this is by motivating you to claim un-receipted costs or automatically including an un-receipted meal allowance of up to £36 daily.

Agency Workers Regulations Guide

What Is AWR? The Agency Workers Regulations (AWR) were created with the aim of protecting temporary agency workers by ensuring that the basic employment and working conditions they experience is equal to that of workers recruited directly by the hirer to do the same job. Taking effect on 1st October 2011, the regulations clearly define […]

Myths and Misunderstandings Surrounding Umbrella Companies.

Regardless of the fact that working via an umbrella business is now an accepted and popular practice among contractors, there are still many individuals out there in the contracting/freelancing community and beyond who do not understand exactly what umbrella businesses are and how they work– or the benefits they can bring. Indeed many contractors still swelling umbrella companies along with Managed Service Companies and other intermediaries as part of the group that frequently gets its’ collar felt by the guys at HMRC. In truth, as we shall see, the reverse is real and umbrella companies are quick ending up being the default and most protected method for service providers to manage their profits. This post will certainly look at a few of these misunderstandings and misconceptions and discuss why it is that umbrella business have actually ended up being so popular:

Getting your first contract

Make sure your right for contracting After collecting basic information regarding contracting if you feel confident and willing to choose it as profession, you need to search the market first. It is important to see the market trends and analyse whether your skills are suitable for contracting. The most important thing to consider is that […]

Why are contractor so in demand?

What makes contractors so attractive to businesses? The contractors are paid higher compared to regular employee and their working schedule is also flexible. So one should wonder what the basic incentives are for companies who are willing to hire the services of Contractors. The employers can benefit their business by utilising the services of Contractors […]

Getting it right

How to setup your contractor company? Traditionally, IT contractors have found it necessary to setup limited companies to work. Considering the tax advantages of using limited company, there wasn’t much of a reason for contractors to think about alternatives. Even with PAYE and umbrella companies now offering a viable option, majority of contractors still prefer […]

Managing the Finances

If you are contracting in the UK, you could be dealing with two different monetary situations.

Working via a Limited company: You will certainly be paying yourself a monthly salary.
Inside IR35: If within IR35, you just need to pay yourself a deemed salary.

Operating PAYE means that you won’t need to fret about earnings tax and NI contributions. These deductions will certainly be instantly made as soon as your accounting professional processes your payroll.

Claiming expenditures is easy when you are resolving a limited company. You can assert all overhead simply like any other business, consisting of company equipment, training, and other expenses. On the other hand, contractors inside IR35 will only be able to assert a 5 % allowance in lieu of overhead.

Why Umbrella Companies Offer Agencies A Safer Way Too

There are currently more than 200,000 workers operating through umbrella companies in the UK and the number is growing every year. Contractors are abandoning limited companies in droves as legislation makes them ever more difficult to work through with ever decreasing tax breaks. Indeed umbrella companies are fast becoming the default setting for new old […]

Has The Limited Company Had Its Day?

For several years now the first choice a contracting had to make when going into the contracting sector on their own was to choose which type of tax cehicle was the most suitable for their purposes. And typically most service providers inevitably chose the Limited route. However, as we will see, the ongoing intro of ever more limiting tax legislation relating to professionals has made the choice less and less clear cut and in reality, made the umbrella business more favorable with each new law. And with the arrival of the much-despised IR35 regulation (and more recently the new Onshore and Offshore employment policies) the umbrella business has swiftly becoming the tax setup for many contractors. That stated, the field is still quite uniformly split and new specialists pertaining to the sector attempting to decide whether they need to go Limited or work via an umbrella are still dealing with a challenging call. This post will attempt to clear some of the choices involved and ask whether, due to all the new guidelines, the Limited Business is still worth it?

Why use Umbrella Companies

Regardless of having actually been around for years, umbrella business are still the only video game in town when it concerns rock-solid, HMRC friendly tax options for professionals. Along the method umbrella companies have seen off Managed Service Companies, Offshore Solutions, EBT and numerous other Solutions. When it concerns cutting out admin and paperwork and increasing take home pay, umbrella companies are still where it’s at!

How to move from a Limited Company to Umbrella

If you’re thinking about moving from a limited company to an umbrella company then it’s probably safe to assume you’ve been contracting for some time and have an idea of the advantages that switching to an umbrella offers. Here at Hamilton Bradbury we’ve found that most of the contractors who come to us from limited […]

GROUP LITIGATION ORDER

Background On 8 March 2001 the European Court of Justice (ECJ) provided a ruling in the Hoechst and Metallgesellschaft cases (joined cases C-397/ 98 Metallgesellschaft Limited and Others v CIR and HM Chief law officer and C-410/ 98 Hoechst AG and Hoechst UK v CIR and HM Attorney general of the united states). The complaintants, […]